2023-05-16 15:10:10
© Reuters EU finance ministers approve MiCA cryptocurrency regulation
CriptoFácil – This Tuesday, May 16, the Ministers of Finance of the European Union unanimously approved the Regulation of Cryptocurrency Markets (MiCA). In this way, the economic bloc becomes the first major jurisdiction in the world to adopt a clear rules regime for the cryptocurrency market.
The EU Council on Economic and Financial Affairs (EcoFin), which represents the 27 member states, approved MiCA and agreed to new anti-money laundering measures involving digital assets.
The rules create a regulatory framework for both crypto assets and crypto issuers and service providers. In doing so, it defines for the first time a legal framework at EU level for this sector.
“I am delighted that today we are delivering on our promise to begin regulating the cryptocurrency industry. Recent events have confirmed the urgent need to impose rules that better protect Europeans who have invested in these assets and prevent the misuse of the crypto industry for the purposes of money laundering and terrorist financing,” said Elisabeth Svantesson, Minister of Finance of Sweden.
Rules for cryptocurrencies in Europe
As the EU Council highlighted in a statement, MiCA aims to protect investors and increase transparency through a comprehensive framework for issuers and service providers. The new rules cover both utility token and stablecoin issuers. They also include service providers such as trading venues and wallets where crypto assets are held.
“This regulatory framework aims to protect investors, preserve financial stability, enable innovation and foster the attractiveness of the crypto-asset sector,” the Council said.
Also according to the statement, as crypto assets have a global nature, the approval of MiCA is a step towards introducing a harmonized regulatory framework in the European Union. It is, according to the bloc, an improvement compared to the current situation with national legislation only in some member states.
European Union approves MiCA
The European Commission presented the MiCA proposal on September 24, 2020. The formal adoption of the regulation this Tuesday is the final step in the legislative process. Now, the regulation is on track to become law in the coming months, when the MiCA will be published in the EU’s official journal.
This regulation is part of a broader EU strategy focused on promoting technological development in the bloc, ensuring financial stability, as well as consumer protection.
In addition to MiCA, the package contains a digital finance strategy, a Digital Operational Resilience Act (DORA), which also covers cryptocurrency service providers.
“This package fills a gap in existing EU legislation, ensuring that the current legal framework does not impede the use of new digital financial instruments. And, at the same time, ensure that these new technologies and products fall within the scope of financial regulations and operational risk management agreements of companies active in the EU,” the statement said.
MiCA details
MiCA requires cryptocurrency companies, such as wallet providers and exchanges, for example, to seek a license to operate across the block. Additionally, stablecoin issuers must maintain adequate reserves for the coins.
Businesses will have a period to catch up with the new rules before they take effect. Certain rules about stablecoins, for example, will be implemented within a year. But other rules will have to wait 18 months to take effect.
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